Device Makers More Likely to Raise Prices than Lower Headcounts Due to Tax
More than 40% of medical device makers surveyed said they would raise prices to deal with some or all of the impact of the new 2.3% sales tax, compared with only 11% who said they would reduce their staff.
Medical device makers are considering a few alternatives to deal with the impact of the new 2.3% medical device sales tax, with far more planning increases in product prices than expecting workforce reductions, according to a recent survey.
More than 40% of medtech companies surveyed said they plan to pass along either part or all of the cost of the tax to their customers and more than 30% said they were working on ways to lower production costs without resorting to layoffs. The results may be marred, however, by the 31% of respondents who either checked "other" or said that they were unable to disclose their plans.